Analysis of Cooper Industries :: Cooper Industries Business Management Essays

analysis of Cooper IndustriesOVERVIEWCooper Industries is a broadly diversified manufacturer of electricand general industrial products, and energy related machinery and equipment.The high society operates in tercet different business segments with 21 separateprofit centers. These segments include galvanizing and electronic, commercialand industrial, compression, drilling and energy equipment. The product line isconsisted of cheap fuses to $3 million compressor tribune sites along withproducts such as hand tools and light fixtures.The company bid a $21-a-share tender swirl to acquire Champion set offPlug, manufacturer of auto sack plugs, as a counter offer for the Dana Corp.s$17.50-a-share bid. Also, in the mean time, Cooper Industries was considering a$700 million bid for Cameron conjure Works. Even though purchasing either or bothcompanies lead give operational and organizational advantages, there were highfinancial risks involved. confinement both acquisitions would res ult in a 55% to60% debt to capitalisation ratio.ANALYSIS Cooper Industries acquired more than 60 manufacturing companies over a cardinal year span in order to increase the size and the field of the company.Most of the acquired companies made it possible for Cooper to be independent ofthe extracurricular environment and giving full control of the manufacturing processconcerning their business plot of ground avoiding anti-trust allegations. Cooperbasically purchased every company that is vital to its energy industriousness and allthe side industries that effect it. From tools to fuses to cables to thedrilling equipment was manufactured and distributed by the corporationsdivisions. distributively acquisition is decided from a wish list that was closelyexamined and studied. At the time of the take over, the Management Development& Planning division would go through the corporate strategy in a period of threeto five dollar bill years. This involves diversification and eliminati on of the productsthat are poor sellers. In some cases the occupation plant is relocated and thestaff is reorganized for the best efficient set up. In time all these companiesare turned into profit centers.RECOMMENDATIONS maven of my starting line suggestions will be to consider Cameron Iron Works firstsince all the valves and other natural gas and petroleum products will be morebeneficiary. Apparently there is more demand for Camerons products than theChampions. Little adjustments in the production process along with theCooperization adjustment will have define the company efficient in a shortperiod of time. In contrast, Champion is considered to have 1950s productiontechniques and only one product line, spark plugs, which will requiretremendous changes within the company. The other option whitethorn be to purchase both of the companies, regardless of